Limitation for assessment orders turns on the order date, with presumption of regularity protecting official records

Section 153 of the Income-tax Act requires an assessment to be completed within the prescribed time, and the date borne on the assessment order, rather than service of the order, is the critical factor. The order date carries a presumption of regularity under section 114(e) of the Indian Evidence Act, and that presumption stands unless rebutted by the assessee. An adverse inference under section 114(g) was treated as unwarranted on the stated facts, and non-production of assessment records did not justify ignoring the official file. The appellate authority may inspect the lower record when deciding the appeal.

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Issues: Whether the assessment order dated 31 December 2008 was passed within the period of limitation, and whether adverse inference or violation of natural justice could displace the presumption attaching to official acts and records.

Analysis: Section 153 of the Income-tax Act requires the assessment to be made within the prescribed time; it does not make service of the assessment order within that period the decisive factor. The date borne by the assessment order attracts the presumption under section 114(e) of the Indian Evidence Act that official acts are regularly performed, and the assessee did not dislodge that presumption. The request to draw an adverse inference under section 114(g) was rejected because the Tribunal was not taking evidence at first instance, and the absence of production of records did not justify ignoring the assessment order and connected official file. The complaint of non-disclosure of the assessment records was also rejected, since an appellate authority may peruse the lower record while deciding the appeal.

Conclusion: The assessment was held to have been completed within limitation on 31 December 2008, the Tribunal's contrary view was unsustainable, and the Revenue succeeded.

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